I keep reading in real estate news that the hot real estate market will pull us out of the recession. And I am thinking, what recession? Park City real estate is hot! Sure, we had a six week lull right when COVID-19 hit starting mid-March. But since about late May, Park City real estate transactions have exploded and multiple offers are quite common. But how do you win in a multiple offer situation without overpaying?
6059 Park Lane S, Park City, UT 84098
Listing curtesy of Mary Ciminelli with Summit Sotheby’s International Realty
1. Hire a seasoned professional Park City real estate agent. This is not the time to use a random agent you found while surfing Zillow and Redfin. Do your research. Read reviews and ask for recommendations. When I am representing a Seller in a multiple offer situation it matters to me who the agents are bringing in the offers. I look for experienced deal makers who are ethical, excellen communicators and understand how to write a great offer.
2. Price is not your only playing card in a multiple offer situation.
a. In the Park City real estate environment we have many Sellers who are selling second homes. Often they want to leave the property with two suitcases and convey the furnishings with the sale. Make it easy on the Sellers. They don’t want to move furniture. (Primary residences away from the ski resorts are a different matter. Don’t ask for furnishings unless it’s convenient for the Seller to convey them).
b. As a Buyer, are your dates flexible? Ask the List Agent what is the ideal timeline for the Seller to close and move. Make the dates work for the Seller.
c. Paying cash? Always present your offer with a proof of funds. If financing, have a pre-approval letter from a LOCAL lender.
d. Do you really need for the Seller to pay for the home warranty? It’s only $500-$750. Not much money as a percentage of the Park City real estate value but just that gesture might be a tipping point to win in a multiple offer situation. Psychologically, it means you are really playing to win.
e. Play at the Seller’s heartstrings. Some Sellers really care about who is purchasing their beloved second home in Park City, where family memories were made and holidays were celebrated. Write your story about why this home is special to you. There may be a personal connection discovered that could swing in your favor. Not all Sellers care only about how much they will net in the sale.
3. If you have hired a great agent, then trust them. A great Park City real estate agent will put you before their income. Your needs should ALWAYS come first. If they say you should offer a higher price to win in a multiple offer, then listen. If they tell you to hold back and don’t over pay, then listen.
4. If you absolutely must win in the multiple offer consider an escalation clause. Be careful that your agent has experience with writing an escalation clause.
5. Be prepared in order to compete. Have your finances in order and your pre-approvals ready. Be available by phone. Great communication is key and time is of the essence when competing in a multiple offer.
Multiple offers aren’t for everyone. But if you love to compete to win that perfect home for you and your family, a well-played negotiation will win the prize. A year from now, or probably less, you will look back and say to yourself, “can you believe I almost didn’t pay $1000 more for this fabulous home in Park City”?
For more strategies, give me a call. I can’t publish all my trade secrets!